30, September 2016

GBP/USD (a 4-hour chart)

General overview

The pound weakened on Thursday despite the positive UK data. The latest Yellen’s comments supported the dollar.

Current situation

The pound was able to extend its recovery at the start of the day and set a daily high at 1.3050. However, the pair was not able to hold its gains and decreased back to the 1.3000 region. The sterling is struggling with the 50-EMA to grow further. The 50, 100 and 200 EMAs are heading lower. The current resistance is seen at 1.3100, the support exists at 1.3000. 

MACD indicator is at the centerline. If the histogram enters the negative territory, that will indicate sellers’ growing strength. If MACD returns into the positive area the buyers will take control over the market. RSI is neutral.

Trading recommendations

The GBP/USD pair may recover further. The first buyers’ target is the mark 1.3060, the second 1.3100. A close below 1.3000 will trigger losses to the 1.2900 level.